by Ben Vernia | March 7th, 2013
On March 7, the Department of Justice announced that three Central Intelligence Agency contractors had agreed to pay $3 million in total to resolve claims that they colluded and paid kickbacks to government officials and consultants to steer business to the companies. According to DOJ’s press release:
The Justice Department announced today that American Systems Corporation, Anixter International Inc., and Corning Cable Systems LLC have agreed to pay the United States $3 million to settle allegations that they violated the False Claims Act and the Anti-Kickback Act in bidding on a contract with the CIA.
The settlement announced today resolves claims against these contractors related to a CIA contract awarded to American Systems in early 2009 to provide supplies and services. American Systems teamed with Anixter to bid on the contract with Corning as a supplier. The United States alleged that American Systems, Anixter and Corning provided gratuities, including meals, entertainment, gifts and tickets to sporting and other events, to CIA employees and outside consultants in order to influence contract specifications that would favor the three companies in the award of the contract. The settlement also resolves allegations that the three companies improperly received source selection information from a CIA employee to whom they had provided gratuities, and that they had concealed the gratuities prior to award.
DOJ also announced that the whistleblower, a former Anixter sales representative, will receive $585,000 of the settlement (a 19.5% relator’s share).
